I’m still on vacation – but seeing all that’s happening, it’s impossible to not write. In fact, it was this email from a reader this morning that truly inspired me. And trust me, I get many just like this.
“Specifically to how your job somehow became to fight against the gold cartel. Man let me tell you, what you have done for people out there, you have had one of the rare opportunities to do something that might actually save people’s lives, when what you have been espousing actually comes to pass. You are the most reliable person in the business right now. Everything you have said has been the word in the mid-term.”
Actually, the reader also gave “co-credit” to my good friend Craig Hemke (aka Turd Ferguson), whom I’m happy to share the spotlight with – given that he, too, is one of the handful of “good, smart guys.” But you get my point.
Anyhow, the reason for today’s article is to all but shout from the rooftops that “Rome is burning!” And yet, while we the few clearly see it – as well as the billions of “financially defenseless” being charred and suffocated, the “investment world” has been so dumbed down by money printing, market manipulation, and propaganda, it actually thinks “markets” are real. That is, what’s left of the investment world – given that hedge funds, pension funds, and sovereign funds alike have been annihilated by crashing asset classes, “market darlings,” government decrees, bankruptcies, and frauds. I mean, do you have any idea how much money was lost in the past year on, say, Valeant Pharmaceuticals (fraud), Allergan Pharmaceuticals (fraud and government decree), Volkswagen (fraud), Deutsche Bank (fraud and stupidity); and oh yeah, the “Yen carry trade” (fraud, stupidity, and government decree) – ALL of which are imploding before our eyes?
I mean, here’s a mere sampling of headlines from the past 24 hours alone…
“Governor of Puerto Rico set to impose capital controls to pre-empt bank cash run”
“Americans spend more on taxes than food, clothing, and housing alone”
“The coming default wave is shaping up to be among the most painful in history”
“How much of S&P 500 growth comes from buybacks?”
“Atlanta Fed cuts 1Q GDP estimate to +0.4%”
“Yen carry trade snaps, as Yen soars – one day after Kuroda suggests more QE in April!”
“Deutsche Bank dead cat bounce dies, as stock plunges.”
“Bonfire of the commodities write-downs is just starting”
“Disastrous ticket sales, ongoing political turmoil but Brazil Olympic games in doubt.”
“Venezuela orders three-day weekends to save electricity.”
“Here we go again, Obama pushes banks to lower home lending standards”
“World preparing for conflict, as global military spending rises for first time in five years.”
“European major economies sour, with dismal first quarter growth”
Yes, I predicted all these things – as the reader says – in the “mid-term”; which more rapidly with each passing day, is getting closer and closer to the “immediate-term.” In other words, it won’t be long before the entire world ignores EVERYTHING Central bankers say – and to the contrary, take the POLAR OPPOSITE investment tack (as is already the case with the Yen and Euro; and will shortly be so with the Fed – no matter how many times it “debates” rate hikes – enroute to inevitably lowering them to negative territory, and embarking on a larger QE program than the ECB and BOJ combined.
As will everything the government statisticians publish – like the NFP “jobs” report.” Not to mention, blatant market manipulations like yesterday’s prototypical “dead ringer” and “DLITR,” or don’t let it turn red, algorithms on the “Dow Jones Propaganda Average,” whilst Precious Metals were raided at the tried-and-true “key attack times” of 2:15 AM, 8:20 AM, and 10:00 AM EST time stamps.
Anyhow, on a morning where gold has again has surged against the Cartel’s wishes – whilst commodities are crashing; the Yen is rocketing higher; Deutsche Bank stock is plummeting; and the list of “horrible headlines” continues unabated, with no end in sight; how ironic is it that the Fed is holding an “historic gathering” (their words), in which Janet Yellen, Ben Bernanke, Alan Greenspan, and Paul Volcker” – i.e., the Fed Chairmen of the past 37 years – are holding a public meeting, titled “when the Fed speaks, the world listens?”
In other words, a gathering of the principal arsonists of not just the U.S. economy, but modern history. Who collectively, via the “fiat dollar standard” created by America’s breach of the Bretton Woods agreement in 1971, have destroyed generations of living standards the world round – not just now, but well into our futures – by recklessly succumbing to political and corporate interests, toward the universal, Ponzi-scheme-esqe goal of “kicking the can” a few more feet.
The ECB said it best just yesterday, when a “white paper” it published arrogantly espoused “Central banks are protected from insolvency due to their ability to create money, and can therefore operate with negative equity.” However, it was the Fed that created history’s greatest “deformation” and destruction – and “spawned” the ECB, BOJ, PBOC and others — through its selfish arrogance, in empowering lesser banks down the same murderous road of death to the masses by inflation. And it is the Fed that will ultimately be viewed through the lens of history as the most destructive entity ever created.< Which is why it is so fortuitous that you, the reader - particularly those in the epicenter of Fed-orchestrated manipulation, the United States, have the opportunity to "beat the Fed" at its own game, in purchasing the very assets it has fought so staunchly, for so long, at historically suppressed prices, well below the cost of both production and industry sustainability. Compared to the amount of "currency" the Fed and its international minions have created; the miniscule supply of above-ground inventories; the historically weak production outlook; and the further monetary arson Central banks are guaranteed to embark on in the very, very near future, gold and silver have NEVER been more valuable than today.